The Only Difference Between Simple Weighted Average Life of a Bond

question 56

Multiple Choice

The only difference between simple weighted average life of a bond and duration of a bond is

• A)The timing of interest payments
• B)Duration involves the present value of individual cash flows
• C)Duration involves the using of the stated value of individual cash flows
• D)None of the above

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Definitions:

Inner-City Youth

Refers to young people living in the densely populated, central areas of large cities, often highlighting demographic, economic, or social distinctions.

Fallacy of Composition

The incorrect belief that what is true for the individual, or part, must necessarily be true for the group, or the whole.

Association

A group of individuals organized for a common purpose, having a formal structure and usually having voluntary membership.

Causation

The act or process whereby one event, process, or state (a cause) leads to the production of another event, process, or state (an effect).